The eurozone has finally emerged from recession following an unprecedented 18 months of economic contraction. Its GDP grew by 0.3% in the second quarter of 2013.
The expected growth follows news that the German economy rose 0.7% between April and June. Germany and France both posted stronger-than-expected growth, expanding 0.7% and 0.5% respectively. Portugal showed the fastest growth, at 1.1%.
The country was one of three that had to take a multi-billion-euro bailout but has recently seen its fortunes take a turn for the better. Not all bloc countries fared quite so well. Italy and the Netherlands both saw output drop by 0.2%.
Spain, saw its economic output fall by 0.1% over the quarter.
European Commission Vice-President Olli Rehn said the figures suggested the European economy was gradually gaining momentum, but added there was no room for complacency. "There are still substantial obstacles to overcome: the growth figures remain low and the tentative signs of growth are still fragile," he said.
"A number of member states still have unacceptably high unemployment rates; the implementation of essential, but difficult reforms across the EU is still in its early stages. So there is still a very long way to go."
Analysts from Capital Economics said: "The return to modest rates of economic growth in the eurozone as a whole won't address the deep-seated economic and fiscal problems of the peripheral countries."
kushal kumar2014-08-21 08:51:50
CONCLUSION :- " Downward trend in world economy is likely to be in mild form during November, 2014 to April, 2015, to grow somewhat intense during May, 2015 to October, 2015, becomes harsh during November, 2015 to July, 2016. Such areas of life as minerals and metals, foodcrops, energy resources , defence and security of nations are likely to bear the brunt of these trends. Collective wisdom in decision making, communication systems, aviation industry, and the cinema , music and TV industries are also , in addition, likely to be touched by these trends. Countries or regions whose names begin with the letters B , E , EU, N, O, P, U or V may need to implement multilevel approach to challenges during this period".